Steve Kovach April 27, 2016 at 07:31AM
ClassPass, the startup that lets you book gym classes at various locations for a flat monthly fee, has increased its cost from $125 per month to $190 per month for unlimited classes. New members will be charged $200 per month for unlimited classes.
To put that in perspective, ClassPass is now more expensive than a membership at the high-end gym Equinox. Those currently paying $125 per month will be enrolled in the plan that gives you 10 classes per month and will have the option to pay more for unlimited classes.
As you can imagine, ClassPass customers aren't happy.
My entire Twitter feed (which, yes, is mostly tech and media people living and working in New York or the west coast and hardly representative of the entire US population) is full of complaints. But it does highlight the broader challenge all those "Uber for X" companies face. You either have to reach a massive scale to keep costs low or raise prices. ClassPass decided to effectively double its prices from where they were about a year ago.
In a statement to Tech Insider, a ClassPass spokesperson said the price increase was necessary to keep a sustainable business.
"We’re encouraged by the usage on ClassPass and the tremendous growth we’ve had, but we have to be realistic about the economics to sustain it and are in the process of investing in the health of our business," the spokesperson said. "We are evolving our business model and adjusting prices in order to create long-term sustainability with both our members and the market. We are committed to having an unlimited product as affordable and accessible as possible, that still provides incredible value to our members while also growing and validating the industry as a whole."
And here's what some customers had to say:
the ClassPass bubble just popped 😠http://pic.twitter.com/4g6xCpVMMk
— Jenna //\\ Wortham (@jennydeluxe) April 27, 2016
ClassPass roped us in at $99/month, now wants to charge $190/month FOR THE EXACT SAME SERVICE https://t.co/QytMNdTzYs
— Jenna //\\ Wortham (@jennydeluxe) April 27, 2016
It's been a good run, @classpass. Bye!
— Stephanie Haberman (@StephLauren) April 27, 2016
@stevekovach raising prices by almost $100 in less than a year... Bye bye customer loyalty
— Bianca McLaren (@biancamclaren12) April 27, 2016
I maintain ClassPass is an excellent service for everyone except ANYONE WITH A JOB, who are, unfortunately the only people who can afford it
— Caro (@socarolinesays) April 27, 2016
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ClassPass increased its price by about $75 and everyone is freaking out from Business Insider: Steve Kovach
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